Do startups really understand the "quarter-inch hole" when designing a new business model?
"Customers do not want a quarter inch drill. They want a quarter inch hole."
This classic instructional anecdote is often cited in customer-centric discussions, but it only scratches the surface of the real issue.
How to scale your startup
Don't just think about what your customers want. Think about what they need to feel successful, fulfilled, and satisfied. Don't just create products. Create experiences that make a real impact in the lives of your customers. Don't just focus on the drill. Focus on the bigger picture and empower your customers to achieve their desired outcomes.
How to be the most customer-centric
Understanding the customer's needs goes far beyond just the "hole" they desire. It's about delving deeper into their journey and discovering what truly drives their decision-making process. Making a “hole” in a wall is only a functional need. What is their true and final intent, understanding that the hole is just a dependency or an intermediate step towards their goal?
A Mental Model for Product Development and Customer Discovery
Ask, “Why do they want a hole?” You know that isn’t what will delight them! Do they want to hang a painting? Yes? That really means they want to beautify their home. That is really their job to be done. Understand that true motivation to design the best product to delight and retain them.
Understanding the customer's unmet needs is critical to designing effective products that drive satisfaction, retention, user growth, and revenue. How does that connect? From creating the ads, to getting them to landing pages, to getting them to sign up even for a free trial, you have to work hard to capture their motivation, distinguish yourself from competitors and emphasize how you make their life better. You have to elevate their desired delight in your copy, throughout your funnel.
Here's an exercise we run to clarify the purpose of the product, and prioritise the feature roadmap.
